Warner Bros partners with SCi
Warner Bros will subscribe to £15 million new shares in the company and handle its North American distribution
SCi and Warner Bros have announced that the two companies have entered into a strategic partnership.
Warner Bros Home Entertainment will subscribe for up to GBP 15 million (USD 30 million) new shares in the company and will handle distribution of SCi titles in the US, Canada and Mexico.
SCi said that it would raise GBP 60 million (USD 120 million) through a fully-underwritten placing and open offer of 171,605,424 new shares in the company at 35 pence per share.
Following completion of the fund raising, the company will have substantial cash balances in addition to its new committed GPB 25 million (USD 50 million) debt facility.
SCi also said that current trading is in line with expectations and that the company is on track to deliver cost savings of GBP 14 million (USD 28 million) from its rationalisation programme at a cost of GBP 7 million (USD 14 million) as announced in February.
Finally, the company noted that its progress with Tomb Raider: Underworld remained encouraging and that the game is scheduled for worldwide release before Christmas 2008.
"Today we have significantly strengthened our relationship with Warner Bros. - one of the world's largest media groups - to create an exciting strategic partnership, giving us increased scale in the North American market, to the benefit of all our major franchises," said SCi CEO Phil Rogers.
"The new financing puts us in a clear position to deliver on the strategic business plan which we announced in February with focus on cornerstone studios and core franchises, delivering high-quality, world class games."
"This investment underscores Warner Bros' commitment to becoming a major presence in the video game business," said Kevin Tsujihara, president, Warner Bros Home Entertainment Group.
"With SCi's new management team in place along with their track record of rich franchises like Tomb Raider, Hitman and Deus Ex we believe we have formed an exciting partnership and a powerful engine for growth."